Comparative financial statements compare the company's current statements with:
A)Those of prior periods.
B)Those of other companies in the same industry.
C)Those of the company's principal competitor.
D)The budgeted level of performance for the period.

Question

Quizplus · Accepted Answer

Comparative financial statements compare a company's current statements with those of prior periods to show trends and changes in performance over time. While comparing to other companies in the same industry or the company's principal competitor can provide valuable insights, it is not the primary purpose of comparative financial statements. Budgeted level of performance for the period is relevant but is usually presented separately in a budgeted income statement or forecasted financial statements.

Comparative Financial Statements Compare the Company's Current Statements With